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Investment – Why Argentina

Talent + Natural Resources To Satisfy Global Demand

Argentina offers a range of profitable investment opportunities to satisfy current world demand. This excellent outlook for businesses is based on the widespread availability of qualified human resources, known for their versatility and talent; the abundance of natural resources and extremely fertile lands; a modern and permanently expanding infrastructure; a macroeconomic context guaranteeing competitive costs and a public sector which actively supports the development of innovative products and services with high added value.

Solid foundations for sustained economic growth

Sustainable growth.
The recovery of the global economy, spearheaded by the emerging economies, presents a favorable scenario for Argentina to consolidate the path of sustainable growth with social inclusion that it was following prior to the eruption of the international financial crisis.
After setting the pace with its annual growth rate of 8.5% from 2003 to 2008 (one of the highest in the world), the Argentine economy has already absorbed the impact of the crisis, and according to a number of different estimates, is forecast to grow by over 5% in 2010.
The relatively limited local impact of the global crisis –both in historical and international terms- has served to highlight the solid macroeconomic foundations underlying the process of recent growth in Argentina. Key factors include the primary and foreign fiscal surpluses (maintained by a highly dynamic export performance), the accumulation of international reserves and the reduction in the effect of national debt on GDP.High level of complementarity with trends in global demand.
The trends emerging from the new international scenario testify to the high degree of complementarity between Argentina’s endowment of skills and capabilities with the consumption and production patterns forecast at global level.
Argentina is well prepared to respond to the growing demands for food products from the more dynamic emerging economies (in particular Asia and the Middle East) as well as from consumers in developed countries seeking products with increased added value, sophistication, traceability and other specific qualities.
The country’s natural and scientific resources are an ideal platform for the development of environmentally-sustainable energy sources, such as biofuels and wind power, which will be necessary to tackle the challenges posed by climate change.
The qualifications and talent of Argentine human resources, in addition to the country’s long tradition of industrial development, position it as a major provider of high value-added professional services (software and IT, design, architecture, the cultural industries and financial services). It also competes at world level as a center for the relocation of different processes involved in the stages of global production chains.
The tradition and excellence of R&D activities in sectors such as medicine, nuclear engineering and biotechnology, together with new developments in the aerospace industry, strengthen Argentina’s potential in the more intensive segments such as technology, knowledge and human capital.

Attractive business profitability

Attractive business results.
Argentina offers investors attractive profitability results in a wide range of sectors. Earnings as a percentage of Foreign Direct Investment (FDI) stock averaged a yearly 10.2% from 2006 to 2008, the highest levels achieved over the last 15 years. Earnings as a percentage of revenues for the 340 largest non-financial companies are also at record levels, averaging 15.4% per year over the 2005-2007 period.
Equal treatment.
By law, FDI receives the same treatment as domestic investment. Remittance abroad of profits and capital is unrestricted. In addition, Argentina has signed 19 bilateral treaties with other countries to avoid double taxation and 55 bilateral agreements for the protection and promotion of investments.

Globally and regionally integrated economy

Open economy.
Busy trade, financial and investment flows link Argentina to both the global economy and the regional economy. Argentina is a founding member of the World Trade Organization and a member of the G20. Exports and imports of goods and services represent almost half of the country’s GDP.An attractive regional market, a global platform.
In addition, Argentina is a full member of Mercosur, the customs union which also includes Brazil, Paraguay and Uruguay. As a common market open to the world, Mercosur guarantees investors in Argentina access to a regional market of 241 million consumers with a combined GDP of USD 1.9 trillion.
Foreign direct investment.
Nearly 2,000 overseas-based corporations operate in Argentina, including half of the Fortune 100 firms, many of which have been operating in the local market for over fifty years.
Transnational companies carry out a wide range of activities in diverse sectors such as agro-industries, automotive, chemicals and petrochemicals, pharmaceuticals, information technology, telecommunications, public utilities, finance and retail.
FDI has grown steadily over the last few years reaching an average annual rate of 43% from 2003 to 2008. In 2008, FDI flows reached USD 9.7, well over the annual average net of privatizations achieved during the 1990s.
In 2009, as a consequence of the international economic and financial crisis, FDI flows towards Argentina fell significantly, in line with the general downturn in investment observed worldwide.

A diversified economy

Value-added products.
Argentina is flourishing as a producer of differentiated goods and services with a significant technological content. It is the world’s fourth-largest producer and exporter of television content; ranking fifth and seventh as wine producer and exporter, respectively, and an internationally-renowned producer of premium quality beef. Furthermore, according to the GUNN Report 2009 (the trade review which analyzes print and TV advertising), Argentina ranks third after the UK and the U.S. as the best place to develop and produce ideas.
The software industry continues to expand with the arrival of some of the world’s leading firms, while exports of high added-value professional and cultural services are multiplying. In 2009, Argentina was fifth in the preferred global location ranking for outsourcing services due to the quality and availability of its workforce, just behind the UK, India, the U.S. and China (Global Shared Services Survey, Deloitte).
A consolidated leader in the food industry.
Argentina is a leading producer and exporter of commodities and raw materials and the world’s number one exporter of soybean oil, pears, honey and lemons among others in a diversified range of agricultural products. Anticipating changing consumption trends in food and nutrition, Argentina now ranks second worldwide in terms of the surface area used to cultivate organic crops.

Skilled and talented human resources

Highly qualified.
Argentina enjoys an international reputation for its highly-qualified human resources. The country ranks second in the region in terms of its literacy rate and school life expectancy, and leads in Latin America with the highest rates of entrance to tertiary education, similar to those in Spain and Italy. The standard of English is the highest in the region, as shown by the results of the exams set by the University of Cambridge English for Speakers of Other Languages (ESOL).
Entrepreneur Driven.
Argentina has a dynamic entrepreneur network flourishing in an ecosystem that promotes creativity and innovation throughout a broad range of industries.
Scientific capacity and innovation.
Argentine professionals are renowned for their capabilities in the areas of science and technological innovation. The number of patents per million inhabitants registered by Argentines with the United States Patent and Trademark Office over the past 45 years (1963-2008) is the highest in the region.

Abundant and diverse natural resources


Natural wealth.
Argentina is one of the planet’s most geographically varied territories, endowed with an abundance of natural resources. It is the second-largest country in Latin America and the eighth in the world.
Argentina possesses a natural heritage of immeasurable value: exceptionally fertile lands, vast stretches of forests, rich mining deposits, a huge network of underground aquifers and plentiful fishing grounds along its Atlantic coast.
The country promotes sustainable development and the protection of its natural resources.

Remarkable quality of life

Live Argentina.
According to the trade publication International Living 2009, Argentina has the best quality of life in the region and ranks 21st among a total of 194 countries included in the magazine’s survey, while its capital Buenos Aires was elected the Most Livable City in Latin America by The Economist in 2009. The range of stimulating cultural and educational activities, sporting attractions and the spontaneous warmth of its people are all major incentives to visit or live in Argentina.

A vibrant culture

Living life and enjoying it.
According to the trade publication International Living 2009, Argentina has the best quality of life in the region and ranks 21st among a total of 194 countries included in the magazine’s survey, while its capital Buenos Aires was elected the Most Livable City in Latin America by The Economist in 2009. The range of stimulating cultural and educational activities, sporting attractions and the spontaneous warmth of its people are all major incentives to visit or live in Argentina.

Quality connectivity and modern infrastructure

Connectivity.
Argentina possesses a modern and competitive communications network. It has the highest density of fixed and mobile lines in Latin America and the highest broadband penetration in the region (Cisco Broadband Barometer 2009). Buenos Aires is the WiFi capital of Latin America with the highest concentration of wireless hot spots per inhabitant, surpassing cities such as Sao Paulo, Mexico City and Santiago de Chile.
Infrastructure.
Argentina has an extensive modern transport infrastructure with over 231,300 km of roads, one of the largest railway networks in the world (31,409 km), 25 sea ports, 38 river ports and 58 airports, of which 23 are international. There are over 25 airlines offering direct flights from Argentina to over 40 destinations in five continents. A strategic investment policy is currently under way in the area of infrastructure to significantly boost the transportation capacity for gas and increase electricity generation capabilities, among other key areas.

Public sector supportive of investment

If you want to invest in Argentina, Uruguay, Chile or Brazil contact us at:

felipegonzalezvergara@gmail.com

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